As development activity continues to grow, developers increasingly face environmental obligations related to impacts on wetlands, waterways, protected species, and habitat. Conservation and mitigation banks provide a market-based mechanism for satisfying those obligations by purchasing environmental credits.

These banking systems can help manage permitting risk, project timelines, and long-term compliance responsibilities. They also present unique opportunities for landowners and investors seeking to generate value from environmental assets.

Key Takeaways:

• Conservation and mitigation banks generate credits used to offset environmental impacts.
• Purchasing credits can provide greater certainty around permitting, timing, and liability.
• Permittee-responsible mitigation may remain an option in certain circumstances.
• Conservation and mitigation banks have emerged as a distinct environmental asset class.

For a detailed analysis of conservation and mitigation banking, key considerations for developers and investors, and the opportunities and risks associated with these environmental assets, read the full article here.